NORTH Queensland homeowners are paying more than double the price for insurance compared withto peoplethose living in Brisbane.

The Federal Government is launching a discussion paper about how to combat the skyrocketing cost of insurance in North Queensland, with submissions open until June 2, and official figures show the cost of insuring a home in the region is about 250 per cent more expensive than doing so in the southeast of the state.

Unit and townhouse owners in North Queensland, who are forced to purchase insurance as part of strata property regulations, have been hit with an average increase of 200 per cent in premiums between 2007 and 2012.

Despite the rising premiumsis, the Federal Government claims insurers have been losing money in North Queensland during the same period.

“For example the (Australian Government Actuary) 2012 study showed that profitability for strata title insurance providers in the region over the 2007-2012 period was poor … around minus 30 per cent of premium,” the discussion paper said.

“This means that for every $100 of premium earned by strata property insurers … around $130 was spent on claims, commissions and operating expenses.”

But insurance advocate Margaret Shaw said she didn’t believe claims insurers were losing money on North Queensland premiums.

“I find it very hard to believe these insurance companies are losing money when they are gouging so much money from homeowners, particularly strata property owners,” she said.

“I believe is it between five and eight times more expensive to insure a unit or townhouse in North Queensland compared with Brisbane.”

What isn’t in dispute is the number of insurers operating in the region has decreased substantially since 2007.

“Only two insurers – IAG and Suncorp – are at present actively writing new strata title insurance policies in North Queensland,” the discussion paper said.

“The comparatively low number of insurers active in the North Queensland markets (especially for strata insurance) … (has) led to speculation … there is ‘price gouging’ by insurers.”

For more information on the insurance discussion paper, visit the Treasury website at www.treasury.gov.au.

THEIR days on the court may be over but former Townsville Fire players Aneka Davis, Cherie Gallagher and Julia Duroux will be cheering from the sideline when the team takes on Bendigo in the grand final.